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Chapter 3

Equal Employment
Opportunity and
Human Resources
Management

Copyright
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Learning Outcomes
Prepare an outline describing the major equal
employment opportunity (EEO) laws related to issues
such as age, gender, religion, weight, and sexual
orientation. Determine the employment practices they
prohibit and the reason behind passage of EEO
legislation. Describe what a bona fide occupational
qualification is
Explain how the Uniform Guidelines on Employee
Selection Procedures were developed and how firms
use them to ensure they are abiding by the law.
Understand adverse impact and disparate treatment
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Learning Outcomes
Understand EEOC record-keeping and posting
requirements and describe how discrimination
charges are processed by the EEOC
Explain what affirmative action is and how
companies today are seeing the value of voluntarily
having diverse workforces

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Introduction
Equal employment opportunity (EEO)
Treatment of individuals in all aspects of employment—
hiring, promotion, and training in a fair and nonbiased
manner
Equal employment opportunity commission (EEOC)
Federal agency that enforces nation’s fair employment
laws

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Introduction
Lack of awareness fair employment laws leads to:
Risk of costly and time-consuming litigation
Negative public attention
Low sales and employee morale
Damage an individual’s careers

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Historical Perspective of EEO Legislation
Factors that influenced growth of EEO legislation
Changing attitudes toward employment discrimination
Published reports on economic problems and injustices
experienced by minority workers
Growing body of disparate discrimination laws and
regulations at different levels of government that
legislators felt should be standardized

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Changing National Values
Beginning of civil rights movement in late 1950s and
early 1960 saw public’s change in attitude toward
discrimination
Minorities conducted marches, sit-ins and rallies with
public authorities to draw attention to low economic
and occupational positions
Civil rights and women’s movements received wide
media coverage
Employment Non-Discrimination Act extends federal
employment discrimination protection to include
sexual orientation and gender identity
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Early Legal Developments
Civil Rights Act, 1866
 Permitted right to enjoy full and equal benefits of all laws,
regardless of race
Unemployment Relief Act, 1933
 Prohibited employment discrimination based on race, color, or
creed
Executive Order 8802, 1941
 Ensured every American citizen would be guaranteed equal
employment opportunities for workers employed by firms
awarded World War II defense contracts

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Causes for Failure of Employment
Discrimination
Nondiscrimination laws failed to give enforcement
powers to the agency charged with upholding the law
Laws that were passed neglected to list specific
discriminatory practices that needed to be corrected
Employers covered by the acts were required only to
comply voluntarily with the equal employment
opportunity legislation

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Figure 3.1 - Prohibited Discriminatory
Employment Practices

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Major Federal Laws
Enacted to prevent discrimination against the
protected classes
Protected classes: Individuals of a minority race,
women, older people, and those with disabilities who are
covered by federal laws on equal employment
opportunity

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Equal Pay Act of 1963
Illegal to discriminate against people in terms of pay,
employee benefits, and pension earned based on gender,
when equal work is done
A company does not violate the Equal Pays Act if the
difference in wages between the genders is due to:
Seniority
Merit considerations
Worker’s quantity and quality of production
If a disparity in pay exists, employers must raise the
wages of the underpaid gender to comply with the laws
Not lower the wages of the overpaid gender

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Civil Rights Act of 1964
Addresses discrimination in society in general
Title VII of the acct specifically bars employment
discrimination in all HR activities and other
conditions of employment
Jurisdiction
All private employers in interstate commerce who
employ 15 or more employees for 20 or more weeks per
year
State and local governments and private and public
employment agencies

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Civil Rights Act of 1964
Joint labor-management committees that govern
apprenticeship or training programs
Labor unions having 15 or more members or employees
Public and private educational institutions
Foreign subsidiaries of U.S. organizations employing
U.S. citizens
Bona Fide Occupational Qualification (BFOQ):
Suitable defense against a discrimination charge only
when age, religion, sex, or national origin is an actual
qualification for performing the job

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Civil Rights Act of 1964
Title VII of the Civil Rights Act
Prohibits employment discrimination based on a
person’s religion
Does not require employers to grant complete religious
freedom in employment situations
Requires employers make a reasonable accommodation
without incurring undue hardship in conduct of the
business

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Figure 3.2 - Major Laws Affecting
Equal Employment Opportunity

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Figure 3.4 - EEO Rules Applicable to Federal
Contractors and Agencies

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Fair Employment Practices (FEPs)
State and local laws governing equal employment
opportunity that are more comprehensive than federal
laws and apply to small employers
Prohibits discrimination based on a person’s sexual
orientation, physical appearance, marital status, arrest
records, color blindness, or political affiliation
Fair Employment Practice Agencies (FEPAs) - State
and local agencies that enforce antidiscrimination
laws

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Other Equal Employment Opportunity
Issues - Sexual Harassment
Unwelcome advances, requests for sexual favors, and
other verbal or physical conduct of a sexual nature in
the working environment
Forms of sexual harassment illegal under ­Title VII
Quid pro quo harassment
 Occurs when submission to or rejection of sexual conduct is
used as a basis for employment decisions
 Involves a tangible or economic consequence such as
demotion or loss of pay

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Other Equal Employment Opportunity
Issues - Sexual Harassment
Hostile environment
 Occurs when unwelcome sexual conduct has purpose or effect
of unreasonably interfering with job performance or creating
an intimidating, hostile, or offensive working environment

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Other Equal Employment Opportunity
Issues - Sexual Orientation
Executive Order 13087 bars discrimination against
civilian employees of federal government based on
their sexual orientation
Homosexuals are protected by fair employment
practice laws passed at state and local levels

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Other Equal Employment Opportunity Issues -
Immigration Reform and Control Act (IRCA)
Employers must comply with the requirements of
Immigration Reform and Control Act (IRCA)
Employers covered by law are prohibited from
knowingly hiring or retaining unauthorized aliens on
the job
Employers with four or more employees are prohibited
from discriminating in hiring or termination decisions
based on nationality or citizenship

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Other Equal Employment Opportunity Issues -
Immigration Reform and Control Act (IRCA)
E-Verification system - Provides an automated link to
federal databases to help employers determine:
Legal eligibility of workers
Validity of their Social Security numbers

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Actions for Employers to Comply with IRCA
Have employees fill out their part of Form I-9
Check documents establishing an employee’s identity
and eligibility to work
Complete the employer’s section of Form I-9
Retain Form I-9 for at least three years
Present Form I-9 for inspection to an Immigration and
Naturalization Service officer or to a Department of
Labor officer upon request

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Emerging Employment
Discrimination Issues
Attractiveness
Weight
and
discrimination
discrimination

Caregivers and
discrimination

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Uniform Guidelines on Employee
Selection Procedures
Procedural document published in the Federal
Register to help employers comply with federal
regulations against discriminatory actions
Applies to employee selection procedures in:
Hiring, retention, and referral
Promotion and demotion
Transfer and dismissal
Help comply with requirements of federal laws
prohibiting employment discrimination

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Uniform Guidelines on Employee Selection
Procedures - Validity
Employers must be able to prove that selection
instrument used to choose individuals for
employment, bears a direct relationship to job success
Validation studies prove the relatedness of the test to
the job under study

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Uniform Guidelines on Employee Selection
Procedures - Adverse Impact and Disparate
Treatment
Adverse impact
Rejection of a significantly higher percentage of a
protected class for employment, placement, or promotion
when compared with the successful, nonprotected class
Ways to show existence of adverse impact
Adverse rejection rate or Four-fifths rule
 Selection rate for any racial, ethnic, or sex class is less than four-
fifths of the rate of the class with the highest selection rate
Conduct standard deviation analysis of firm’s applicant
data

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Restricted Policy, Disparate Treatment,
and Workforce Utilization Analysis
Restricted policy
• Evidence that an employer has a selection procedure that excludes
members of a protected class, whether intentional or not,
constitutes adverse impact

Disparate treatment
• Situation in which protected class members receive unequal
treatment or are evaluated by different standards
• Involves instances of purposeful discrimination

Workforce utilization analysis


• Process of classifying protected-class members by number and by
the type of job they hold within the organization

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Enforcing Equal Employment
Opportunity Legislation
Factors used to accomplish the goals of EEOC
Issuing various employment guidelines and monitoring
the employment practices of organizations
Protecting employee rights through the investigation
and prosecution of discrimination charges

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Equal Employment Opportunity
Commission
Formulate EEO policy and approve litigations involved
in maintaining equal employment opportunity
Encourage employees, who file a claim, to call on its
toll-free number or fill out a questionnaire online
Commission then begins process of evaluation to
determine weather the complaint is covered by the laws
it enforces

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Record-Keeping and Posting Requirements
Organizations subject to Title VII are required to
maintain employment records and reports
Federal contractors and subcontractors have special
EEO reporting requirements
Failing to comply incur penalties
Fines and imprisonment

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Figure 3.5 - Filing a Charge of Employment
Discrimination

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Processing Discrimination Charges -
Retaliation
Managers and supervisors cannot retaliate against individuals
who invoke their legal rights to file charges or to support other
employees during EEOC proceedings

Title VII states that an employer may not discriminate against


his employees because employee has:
Opposed any unlawful employment practice

Made a charge, testified, assisted or participated in an


investigation, proceedings, or hearings under this Act
Includes punitive action taken against employees who elect to
exercise their legal rights before any EEO agency
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Preventing Discrimination Charges
Done by having a comprehensive EEO policy
Requirements of an antidiscrimination policy
statement
Must be inclusive
Cover all applicable laws and EEOC guidelines
Contain practical illustrations of specific inappropriate
behavior

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Preventing Discrimination Charges
Factors of comprehensive training program include:
Prohibitions covered in the various EEO statutes and
executive orders
Guidance on how to respond to complaints of
discrimination
Procedures for investigating complaints
Suggestions for remedying inappropriate behavior

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Affirmative Action and Diversity
Management
Affirmative action: Requires organizations to comply
with the law and correct any past discriminatory
practices by increasing the numbers of minorities and
women in specific positions
Regulations for employers to establish action plans
Provide an organizational profile that graphically
illustrates their workforce demographics
Establish goals and timetables for employment of
underutilized protected classes
Develop actions and plans to reduce underutilization

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Affirmative Action and Diversity
Management
Monitor progress of the entire affirmative action program
Chief diversity officer (CDO): Top executive
responsible for the implementation of a firm’s diversity
efforts
Drawback of affirmative action program
Reverse discrimination: Act of giving preference to
members of protected classes to the extent that
unprotected individuals believe they are suffering
discrimination

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Court Decisions
Supreme Court ruled that:
Applicants must be evaluated on an individual basis
Race can be one factor used in evaluation process as
long as other competitive factors are considered
Supreme court did not endorse all voluntary
affirmative action programs
Encouraged programs that voluntarily implemented and
designed to correct past racial or gender imbalances

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Beyond Affirmative Action: Leveraging
Diversity
Future of affirmative action rests in managers’
attitudes and voluntary actions to make workplace
fairer and more competitive
Diverse workforce enables a company to keep up with
changes
Steps toward leveraging people’s differences involve:
Seeing
Understanding
Valuing

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Figure 3.6 - Steps to Leveraging
Employee Differences

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